When Should Builders Risk Insurance Be Purchased?

Buyers should start the insurance discussion while planning the project and obtain a bound policy before the first relevant property exposure. Builders risk addresses construction-stage property, and the NAIC definition includes buildings in the course of construction plus certain materials and equipment. A quote request alone does not mean the policy has taken effect.

The date may need to precede ground-breaking if building materials will be stored or delivered earlier. US Assure’s application guidance asks applicants to address policy timing and construction stage; its program also requires additional review for submissions made after a stated completion threshold. That threshold applies only to its program.

Give the insurer the expected delivery date, work start, completion percentage, project schedule, and requested policy term. Confirm binding, effective date and time, covered locations, and any underwriting conditions in writing. Coordinate the start with the construction contract and any existing property insurance.